October 10 2014 – Foreign selling is a whopping 1.5 Bil pesos. This is on a day when total value traded is merely P7.8Bil, and as such people have chosen to create their own destiny and fortunes by playing with the current flame #AR to close at the highs of 0.0074 with P90M value traded. That stock will be immune to any 300 point downturns in the market. That stock will move the way the controller wants it to move, as well as the lemmings which follow charts. If it wants to pause, it pauses. If it wants to rise, it rises. If it wants to shake out, it can shake out as well. 0.0063 and 0.0070 are your supports.
Here are the scary numbers one has to note upon:
#TEL 3000 looks like it will be broken down next week. -186/370 (closes at 3010 with more sellers)
#GLO 1600 seems to hold but will continue to be directionless in its basing conso (-16/47)
#URC -155/318 Leader succumbs to overall global weakness. First time to break 180. You cannot be bullish.
#JFC -101/126 Price of 190 may be holding now, but it’s teetering on its edges. Valuation wise on the upper end, take a hint. We’re not in a bullish market.
#BDO -94/202 If a leader is sold and sent to cash, you have a bearish recipe. Anyhow, it will be less sold than the rest but it’s prudent to be taking profits if you haven’t.
#MBT +11/163 The laggard gets some love by bargain hunters at 86 below but if you’re not someone patient, you’re still looking at sideways movement on this one.
#SECB -9/33 – 140 breaks down and profit taking to continue.
#GTCAP -50/404, even leaders succumb to weakness. Expect more drops back to 1000 if more profit taking continues
You don’t want to be owning conglomerates when they’re sold off:
#MPI the exception gets love (maybe coz of #MER) with +13/31
Properties Are Still Sold Down. Be Patient and Wait for More Drops. Continue Selling On Resistances.
#RLC and #VLL are behaving abnormally but sector is getting clobbered.
+17/163 and +26/149 respectively
Gaming (Although strong, it’s hard to continue betting that outperformance of sector will last. Cash is still king)
#BLOOM +136/347 ( Fade the strength)
#MCP -11/28 (Fade the strength)
#LR 1/9 (sleeping but sector is not gonna be immune forever) Lack of value traded shows hesitation to make the company breakout or breakdown- Looks like this one sleeps and consolidates on a range.
Retail Getting Some Bullish Divergences (MACD and RSI shows bullish accumulation happening here. A good capitulation will help buyers and pick the pace faster. Only two scenarios – large funds throw the towel already and give the shares to another fund through large blocks or continue in doldrums via the accumulation being seen.)
#PGOLD -26/77 (We wait for more capitulation possibly from a throwing of the towel from largest fund seller past few weeks and months from #Deutsche, after capitulation – vacuum of sellers will be enough for a dead cat bounce. Watch for either scenario to happen – slow doldrums or quicker capitulation)
#RRHI -6/52 (closes at 62.40 – good close and showing what #EW vomit did, which was to create first a low, bounce from it and do sidewards movement – #RRHI showing resiliency. Not bad.)
Nickel Miners Gets More Beating
#NIKL -135/266 @ 41.40 Strong foreign selling and 40 support zone may become possible resistance if this continues. We shall monitor but this one has two negatives (foreign sell flows and chart hinting on either consolidation or strong selling at 44-45 levels) – Only fundamentals are hinging on this stock to not fall a cliff. Must be vigilant and respect stops should foreign selling emerge larger. React when 40 breaks with strong momentum on the downside. If not, range and neutral consolidation stays.
#MARC -1.9/20 (Considering the other nickel miner is not getting a beating, it doesn’t mean it’s not gonna break down. It only means there’s less foreign selling because there was not many foreign buying to begin with. Nevertheless, this follows the fate of Nickel Asia wherever it goes.)
Stock Dividends Received and Sold
Power- becoming a safe haven
This sector is less affected by the drops, but will not be immune on any sell-off. Recent leader #EDC getting some profit taking with -58/291, nevertheless, still gonna be creating higher lows. Just watch on possible pullback entries. Let the chart speak for itself.
#AP +47/101 – Becoming a safe haven for those who prefer not to park simply in cash.
#MER +28/70 – Same thing, people want yield instead of just simply cash.
#PCOR +13/132 – Unhurt with the selloff- Accumulation apparent.
#FGEN +15/92 – walang daplis
#FPH +7/34 – still above 90 and on top of the world.
#LPZ +24/37 – still above 6 and on top
Power sector and Lopezes are autistic so let them stay autistic.
A prepared mind and a prepared pocket will be able to weather this correction. Foreign money have been selling our markets for whatsoever reasons and it’s prudent to be joining the larger hands of the market since they can control stocks’ short term swings. If they don’t sell #BLOOM and #AP, it doesn’t fall right? It’s sometimes eerily self-fulfilling too. So, while some stocks and a few sectors (power, gaming, selective banks) can withstand the downpour, we need to have some cash to bask and buy the companies and stocks we believe in.
Of course one can also just park in autistic stocks that don’t move up or down with the market. #EMP is zero beta. That’s one example of a perfectly controlled stock. 10.90-11.00 range for two months. No volatility at all. As to people who want to take their destinies into their hands, there will always be “basura” stocks to complement your daily itch- for now #AR has been getting some 90 Mil buyers and closes at the high of 0.0074. What it does on a day to day basis is dictated by its controller. Be controlled or control. Choose.
– Faceless Trader